what are the advantages and dis-advantgages of leaseing automobles?

Answer 1

Buying and leasing are different methods of getting a vehicle to use for a period of time. Buying is pretty straight forward, you make a down payment, then payments for a set period and at the end, you own the vehicle. Leasing you can own it at the end, or give it back, or trade for something newer. You are essentially "renting miles" when you lease, and there is a penalty if you go over those miles.

Rather than try to show it here, let me give you a link instead, which will show the advantages and disadvantages to a lease.

http://www.lectlaw.com/files/cos17.htm

Answer 2

Some of the advantages are:

low down payment
the monthly payments can be listed as an expense, if the lease is in a business name.
No worry about reselling or trading the car when you are done with it.
You can drive a new expensive car every 2 or 3 years.

Some of the disadvantages are:

Limited amount of mileage that you can drive
The high price of excesss mileage. 15 or 20 cents a mile.
You will be charged for any damage to the car.
When the lease is up, you have no residual value in the car.